DATE:

May 25, 2005

TO:

All Workers’ Compensation Customers

FROM:

Craig Petersen

Background

During the weekend of April 16, 2005, DIT staff attempted to load some new programs to our WORCS mainframe database in preparation for Electronic Data Interchange/Proof of Coverage (EDI/POC).  Problems resulted in data being lost.  When DIT staff attempted to restore the WORCS data, it was determined that it was not backed up properly.  This has resulted in over 1.7 million pieces of data being lost out of approximately 40 million over a 14-year period.

Good news

WORCS Compliance & Employer records portion of the database was backed up elsewhere for EDI/POC so it was restored at 100%.  The Funds Administration database along with the Self-Insurance and Group Self-Insurance records were not affected because their computer systems are not on WORCS.  Compensation Supplemental Fund reimbursements and Single Business Tax credits will not be adversely impacted, and quarterly processing of these requests will continue without delay.

Bad news

The major loss of data involved the Claims subsystem that stores all claims forms and related payment information, as well as contested case information including applications for mediation or hearing, mediator and magistrate orders, docket history (over 225,000 hearing records were lost) and case resolution information.  We are vigorously working on trying to identify and fix critical records, beginning with contested case information.  However, due to the volume and complexity of this process, we will never be able to restore all of the data.  Therefore, for all practical purposes, our 14-year claims history prior to April 16, 2005 will never again be totally reliable.

WCA Workflow AND Customer Impact

The WORCS system allowed staff throughout the state to view past and current claims information along with updating mediator and magistrate daily dockets and case resolutions.  Because programs will abort if someone performs an inquiry on records with missing information, only limited WCA staff currently has access to WORCS.  Therefore the hearing site staff where the contested case file is located will have to manually review the file and provide necessary information to our other staff or customers.

Because the WORCS database is not reliable or accessible, most WORCS generated reports and statistics will NOT be processed and distributed.  This would include, but is not limited to the following:

·        Mediator and magistrate monthly statistics.

·        Mediator and magistrate daily docket sheets.

·        Mediator and magistrate docket information including totals.

·        Aged case management reports for mediators and magistrates.

·        Various case resolution statistics for monthly and annual reports.

·        Individual claims history information from claim forms submitted.

The WCA claims workflow will also be adversely impacted as follows:

·        Decisions and opinions on all old cases are being manually mailed out.

·        Notices on all old cases will have to be manually processed and typed at the hearing sites.

·        The magistrate and mediator dockets will be entered into an Excel spreadsheet and tracked manually.

·        Magistrate monthly statistics will have to be manually counted and entered into an Excel spreadsheet by WCA staff in order to keep track of case resolutions.

·        Because the Detroit file room office staff cannot access magistrate docket information from around the state, you will no longer be able to call them for hearing dates assigned from pretrials.  You will have to attend the pretrial hearing on the date and time shown on the notice, or check with the assigned magistrate for their individual protocol for appearances.

·        Since April 16, 2005, new Applications for Mediation or Hearing – Forms A, B, & C, were delayed approximately three weeks in being set and served for mediation conferences or pretrial hearings.  The contested case staff should have these applications completely caught up this week.

·        Amended or re-filed applications (104A) and petitions to determine rights (104C) where there is an existing contested case file at the hearing site will be delayed in processing.  The Lansing contested case staff will have to request documents from the agency file, and then reload the claims information into WORCS.  However, these applications should be set and served with a hearing date within 60 days of receipt.

·        Inquiries from customers and the public concerning individual claim information will no longer be provided because the claims database is not reliable or accessible.

·        Compliance & Employer Records division has a backlog of Forms 400 and 401 that need to be data encoded into WORCS due to the system being down for 10 business days.

·        DIT programmers exclusively assigned to the Workers’ Compensation Agency are reviewing approximately 200 claims and appellate on-line and batch programs and making changes where necessary so that programs don’t abort if they encounter missing data.

·        Claims forms (e.g., WC-100 – Employer’s Basic Report of Injury; WC-107 – Notice of Dispute, and WC-701 – Notice of Compensation Payments) cannot be entered into the WORCS system at this time until the on-line and batch programs have been changed.

·        The appellate subsystem was also adversely affected, but we are hopeful that a majority of the data can be recovered.  Once the necessary programming has been finished, all available data has been reloaded, and the interface is working between the claims and appellate subsystems, the Workers’ Compensation Appellate Commission’s staff will be able to resume using WORCS.

Our agency will continue to provide you with periodic updates on our WORCS mainframe and workflow issues, and post them on our web site at www.michigan.gov/wca, and at all of our hearing site locations.

If you have any questions, please contact me.